DTN Grain Open: Lower as Supply Fears Reign

Photo: Zach Larson, Pennsylvania State University

6:00 a.m. CME Globex: December corn is down 6 cents per bushel, November soybeans are down 6 cents, and September K.C. wheat is down 3 1/2 cents.

CME Globex Recap: Global equity markets are higher, attempting to add to last week’s mostly positive trade. Trade will continue to be a focus this week as President Trump said he has a phone call scheduled with President Xi “very soon,” while White House economic adviser Kudlow said Sunday that deputy-level talks are scheduled for this week and next.

Fortunately, President Trump did postpone the implementation of his latest 10% tariff until December scheduled to go into place September 1. In the background, there is also nothing being done with regard to trade relations with either the European Union or Japan.

Weaker Ag markets across the board as weather conditions remain mostly favorable and demand news remains almost universally pessimistic. One week on from the August WASDE and bulls are still trying to pick up the pieces. With the crop getting more mature, a more accurate assessment of yield can be had from private crop tours in coming weeks.

With two-weeks left in August, it is worth keeping in mind that seasonally lows are often set during the months of September and October for both corn and soybeans.

OUTSIDE MARKETS: Previous closes Friday showed the Dow Jones Industrial Average up 306.62 at 25,886.01 and the S&P 500 up 41.08 at 2,847.60 while the 10-Year Treasury yield ended at 1.539%. Early Monday, the September DJIA futures are up 209 points.

Asian markets are higher with Japan’s Nikkei 225 up 144.35 (0.71%) and China’s Shanghai Composite up 59.27 points (2.1%). European markets are higher with London’s FTSE 100 up 49.29 points (0.69%), Germany’s DAX up 82.09 points (0.71%) and France’s CAC 40 up 33.06 points (0.62%).

The September Euro is steady at 1.110 and the September U.S. dollar index is up 0.078 at 98.085. The September 30-Year T-Bond is down 2, while December gold is down $13.90 at $1,509.70 and September crude oil is up $0.27 at $55.14. Soybeans on China’s Dalian Exchange were -0.24% while soybean meal was -0.14%.

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